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Financial Results
Presentation Material
for the Three Months Ended
June 30, 2024
HAGIWARA ELECTRIC HOLDINGS CO., LTD.
(TSE Prime Market & NSE Premier Market: 7467)
August 26, 2024

Highlight

Net sales reached a record high for four consecutive periods.
Profit declined due to changes in sales composition and growthinvestments.
・Net sales reached a record high at ¥62.1 billion, up 23.1% YoY.
Financialresultssummary for
FY2025/3 Q1

Earnings
forecasts for
FY2025/3

Despite the impact of the automobile production adjustment, net sales of ElectronicDevices Business grew significantly due to sales expansion to new customers andpositive effects of the weak yen.
・Operating profit was ¥1.8 billion, down 25.6% YoY, due to sluggish gross profit
growth caused by a fallback from spot profits of Electronic Devices Business in thesame period of the previous fiscal year and a decline in the sales composition of theEmbedded Solutions Business, as well as the implementation of growth investments
such as human resources investments.
・Ordinary profit was ¥1.8 billion, down 26.0% YoY, and Profit attributable toowners of parent was ¥1.2 billion, down 28.7% YoY.

Earnings forecasts have not been changed from the figures announced
on May 14.
・In the first quarter, although there is the impact of external factors such as
adjustments in automobile production, earnings forecasts have not been changed
from the figures announced on May 14, 2024, partly because of our performance isprogressing at a figure close to our initial plan.
1INDEX

Financial results summary for FY2025/3 Q1
Earnings forecasts for FY2025/3

2

Financial results for FY2025/3 Q1・Net sales reached a record high as a financial result for the firstquarter.
・Profit declined due to sluggish gross profit growth caused by achanges in the sales composition, and implementation of growthinvestments such as human resources investments.
(Unit: Millions of yen)

FY2024/3 Q1

FY2025/3 Q1AmountRatio

AmountRatio

YoY

Net sales

50,504

100%62,148100%+11,643+23.1％

Gross profit

5,352

10.6%

5,219

8.4％

(１３３)

(2.5)％

Selling, general andadministrative expenses

2,852

5.6%

3,359

5.4%

＋507

＋17.8％

Operating profit

2,500

5.0%

1,859

3.0％

(640)

(25.6)％

Ordinary profit

2,529

5.0%

1,872

3.0％

(656)

(26.0)％

Profit attributable to owners ofparent

1,706

3.4%

1,215

2.0％

(490)

(28.7)％

189.40－122.06－(67.34)－*1

Earnings per share (Yen)*1

The number of issued shares increased YoY due to the exercise of rights to subscribe for new shares. The average number of shares during the period
was 9,010,159 shares in FY2024/3 Q1 and 9,962,495 shares in FY2025/3 Q1.

3

Positive factors for net sales

・Net sales increased by ¥11.6 billion, or 23.1%, YoY.
・Net sales in Electronic Devices Business grew significantly inJapan and overseas due to the expansion of sales to newcustomers and positive effects of the weak yen.

Net sales(Billions of yen)

+4.8

+00.3

62.1

Increase insolutionsales+6.7
Increase indevice sales(overseas)

50.5Increase indevice sales(Japan)・Positive effectsof the weak yen
・Increased
requirements
mainly in US.

・Sales to newcustomers
・Use in additional
vehicle models
4Changing factors
for operating profit

・Operating profit declined by ¥0.64 billion, or 25.6%, YoY.
・Operating profit declined due to changes in the sales
composition and a fallback from spot profits in the same period of
the previous year, as well as the implementation of growthinvestments such as human resources investment.

Operating profit(Billions of yen)

２.５(0.15)
・Fallback fromspot profits in thesame period ofthe previous FY(0.31)(0.19)
Increase ininvestment
・Labor costs
・Systeminvestments
・Researchfunding

1.8
Increase inother costs
・Freight・Transfer
compensation
because of thetransfer oftransaction flows
5

・Despite the impact of the automobile production adjustment, net
sales grew due to sales expansion to new customers andpositive effects of the weak yen.
・Segment profit declined due to a fallback from spot profit in thesame period of the previous fiscal year and an increase in the(Unit: Millions of yen)cost of growth investments, etc.

Electronic Devices Business:
Financial results summary

FY24/3 Q1

AmountNet sales
Segment profit
Millions of yen

FY2025/3 Q1

Ratio

AmountRatio

YoY

44,041

100%

55,649100％+11,607+26.4％

1,965

4.5%

1,720

3.1％

(244)

(12.4)％Net sales

Millions of yen

60,000

Segment profit and segment profit margin

55,649

1,965
2,000

50,0001,720

44,04140,0001,500

34,35230,00029,292

10.0

1,000

18,122870

20,000500

10,0000%
15.0

21/3/1Q

22/3/1Q

23/3/1Q

24/3/1Q

25/3/1Q

0

4.5

3.1

634

5.0

229

1.321/3/1Q

2.2

2.5

22/3/1Q

23/3/1Q

24/3/1Q

25/3/1Q

0.06

・In Japan, sales were boosted by expanding sales to newcustomers and adopted products for existing customers in
additional vehicle models for existing customers.
・Overseas, sales were boosted by about ¥1.5 billion due to theimpact of foreign exchange rates, and were strong mainly inUnited States.
(Unit: Millions of yen)

Electronic Devices Business: Net
sales by client (YoY)(Unit: Millions of yen)

55,649FY2024/3 Q1
44,041

AmountRatio

Amount

Ratio

DENSO
CORPORATION

24,97756.7%

24,102

43.3％

(875)

(3.5)％

TOKAI
RIKA CO.,
LTD.

1,421

3.2%

1,395

2.5％

(25)

(1.8)％

Others

6,844

15.5%

14,50626.0％+7,663 +112.0％

Overseasclients

10,79924.5%

15,64528.1％+4,845+44.9％

Total

44,041－55,649－+11,607+26.4％

24,102

24,977

1,395

14,506FY2025/3 Q1

YoY

1,421
6,844

*1
15,645
10,79924/3/1Q 25/3/1Q*1

Sales to the overseas offices of major customers, including DENSO CORPORATION, have been
included in Overseas clients.

7

・Overseas, sales increased in all area due to about ¥1.5 billion
impact of foreign exchange rates and increased requirementsof major customers.

Electronic Devices Business:
Net sales by region (YoY)(Unit: Millions of yen)

FY2024/3 Q1(Unit: Millions of yen)

FY2025/3 Q1

15,645
AmountRatio

AmountRatio

33,241

75.5%

40,00371.9％+6,762＋20.3％

Asia

4,770

10.8%

6,144

11.0％

+1,374+28.8％

United *2
States

4,986

11.3%

7,877

14.2％

+2,890+58.0％

Europe

1,042

2.4%

1,623

2.9％

+580

+55.7％

Overseas(total)10,79924.5%

15,64528.1％+4,845+44.9％

Total

44,041－55,649－ ＋11,607+26.4％

*1

Japan

YoY

6,144

*2

10,799

4,770

7,877

4,986

1,042

1,623

24/3/1Q 25/3/1Q*1*2

Region names represent the Group’s business locations (excluding intragroup transactions).
Financial results included in FY2025/3 Q1 are figures from January 2024 to March 2024 as thefiscal year-end for the Group’s bases in Singapore, China and the United States is December.

8・Despite sluggish growth in Embedded Solutions Business due tochanges in market conditions, net sales remained at the same level
as the same period of the previous year, by capturing demand for
IT investment and manufacturing facilities expansion.
・Segment profit declined due to changes in the sales composition
and aggressive growth investments.
(Unit: Millions of yen)Technology Solutions Business:
Financial results summary

FY2024/3 Q1AmountNet sales

FY2025/3 Q1

Ratio

Ratio

YoY

6,463

100%

6,498

100％

+３５+0.5％

534

8.3%

138

2.1％(396)(74.1)％

Segment profit
Net sales

Segment profit and segment profit margin
6,498

600

534

6,463

6,000

500

5,351
4,462%
15.0

Millions of yen

Millions of yen
7,000

5,000

Amount

4,702

12.0

400

4,000

339

300

3,000

9.0
8.3

200

170

188

100

3.8

4.0

138

6.4

6.0

2,000
1,000
00
21/3/1Q

22/3/1Q

23/3/1Q

24/3/1Q

25/3/1Q

3.0
2.1

21/3/1Q

22/3/1Q

23/3/1Q

24/3/1Q

25/3/1Q

0.0

9Technology Solutions Business:
Net sales by business (YoY)

・Although sales in the embedded solutions business weresluggish due to inventory adjustments by industrial equipment
companies, sales remained at the same level as the same periodof the previous year, reflecting demand for PC updating andexpansion of R&D and manufacturing facilities.
(Unit: Millions of yen)

(Unit: Millions of yen)

6,463

FY2024/3 Q1

6,498

Amount
1,865

3,638

2,011

AmountRatio

YoY

IT Solutions/
Data Platform

1,865

28.9%

2,011

31.0％

+145

+7.８％

Embedded Solutions

3,638

56.3%

3,365

51.8％

(273)

(7.5)％

958

14.8%

1,121

17.3％

+１６２+17.0％

6,463

－

6,49８

－+３５+0.5％

3,365Total
1,121
*1

24/3/1QRatio*1

FA Engineering

958

FY2025/3 Q1

25/3/1Q

From FY2025/3, the names of the previous System Solutions, Embedded and FA Solutions were changed to IT Solutions,Embedded Solutions and FA Engineering, and Data platform was newly added to these businesses. Amount of Data platform
sales are combined with IT solutions. The details of each business are as follows.

IT: Sale of IT devices, development of apps, development of IoT systems, security measures, etc.
Data Platform: IoT data platform, services sales, etc.
Embedded: Development and manufacturing of industrial computers, sale of industrial embedded computers for machinery, etc.
FA: Sale of measurement devices, inspection equipment and FA devices, development, manufacturing and sale of various automated and labor-saving manufacturing equipment.

10Technology Solutions Business:
Net sales by industry (YoY)

・In addition to strong investment in electrification of automotiverelated companies, investment demand from non-manufacturing
customers was captured.
(Unit: Millions of yen)

(Unit: Millions of yen)

FY2024/3 Q1
6,463

6,498
Amount2,066

FY2025/3 Q1Ratio

AmountRatio

YoY

1,997

3,017

Automotive

2,066

32.0%

1,997

30.7％

(68)

(3.3)％

FA & Industrial
equipment

3,436

53.2%

3,017

46.4％

(４１９)

(12.2)％

Others

960

14.9%

1,483

22.8％

+５２２+54.4％

Total

6,463

－

6,498

－+３５+0.5％

3,436

960

24/3/1Q

1,483

25/3/1Q

11

INDEX

Financial results summary for FY2025/3 Q1
Earnings forecasts for FY2025/3

12

Earnings forecasts for FY2024/3

・In the first quarter, although there is the impact of external factors
such as adjustments in automobile production, earnings forecasts
have not been changed from the figures announced on May 14,2024, partly because of our performance is progressing at a figure
close to our initial plan.
(Unit: Millions of yen)

FY2024/3

FY2025/3

AmountRatio

AmountRatio

225,150100%

269,000

１００％+43,849+19.5％

Operating profit

7,711

3.4%

7,900

2.9％

+188

+2.4％

Ordinary profit

7,221

3.2%

7,100

2.6％

(121)

(1.7)％

Profit attributable toowners of parent

4,421

2.0%

4,600

1.7％

+178

+4.0％

458.80－461.73－+2.93－Net salesEarnings per share (Yen)

YoY

13

・From FY2025/3, the target dividend payout ratio was raised
from 30% to 30-40%.
・The dividend forecast has not been changed from the previous
forecast, and the annual dividend for FY2025/3 is expected tobe 185 yen with a payout ratio of 40.1%.

Return to shareholder

Trends in dividends and dividend ratio

Annualdividend

Yen
200

Dividend
payout ratio

Inc. anniversary
dividend of ¥10185％

18550(Forecast)

180155160
140
Inc. anniversary
dividend of ¥5120

95

100
80
60
4070

Inc. anniversary
dividend of ¥5105

105

80

40.1

100

40.3

80
32.8

30.4

40

29.7

30.6

17/03

18/03

（Forecast）

34.2

30

30.6

30.8

27.9

20
0

20
16/03

19/03

20/03

21/03

22/03

23/03

24/03

25/03

14【Disclaimer concerning use of this document】
Every effort has been made to ensure accuracy in preparing these materials, but no guarantee is made regarding theaccuracy or completeness of the information.
Performance forecasts and future projections contained herein are based on information available at the time of preparationand contain potential risks and uncertainties. Actual performance may therefore differ significantly from future forecasts due
to various factors such as changes in the business environment.
Hence, no investment decisions should be made based solely on these materials. Furthermore, the Company assumes noresponsibility whatsoever for any damages incurred as a result of the use of these materials.